Nigeria Approves Shell’s $1.3B Asset Sale to Renaissance

BREAKING NEWSDecember 20, 2024 at 9:10 AM UTC

TLDR

Nigeria has approved a $1.3 billion deal for Renaissance Africa Energy to acquire Shell Plc’s onshore oil assets
Renaissance is a consortium of local companies comprising ND Western, Aradel Holdings, and Waltersmith Group
The deal has faced opposition from civil society groups, including Amnesty International, citing concerns over human rights

Nigeria has approved a $1.3 billion deal for Renaissance Africa Energy, a consortium of local companies, to acquire Shell Plc’s onshore oil assets. The decision, announced by Petroleum Resources Minister Heineken Lokpobiri, reverses an earlier rejection of the deal in October.

Renaissance, owned by firms including ND Western, Aradel Holdings, and Waltersmith Group, will take over Shell Petroleum Development Co., marking a step in Shell’s long-term strategy to exit the Niger Delta region. Shell confirmed receiving notification of the approval and is reviewing the decision.

The deal has faced opposition from civil society groups, including Amnesty International, citing concerns over human rights and urging safeguards before proceeding.

You can follow Daba’s reporting on Africa on WhatsApp. Sign up here

Key Takeaways

The approval underscores Nigeria’s focus on increasing local ownership in its energy sector. This follows a similar move in October when Exxon Mobil’s onshore assets were sold to Seplat Energy. For Shell, the sale aligns with its global pivot from challenging onshore operations, particularly in regions like the Niger Delta, to focus on offshore and cleaner energy ventures. While the transaction enhances local participation in the oil sector, concerns over governance, human rights, and operational transparency will be critical in determining the long-term impact of these asset transfers on Nigeria’s energy industry.

Nigeria

Shell

Renaissance Africa Energy

ND Western

Aradel Holdings

Waltersmith Group

Oil & Gas

Niger Delta